Keep more of what you earn through proactive, personalized strategies.

Taxes may be inevitable, but overpaying doesn’t have to be. Thoughtful, proactive tax planning is a key part of a comprehensive wealth strategy. One that guides on how to save and invest all year round. One that helps you keep more of what you earn, grow your investments more efficiently, and moves you closer to your long-term goals.

Tax planning is especially beneficial for those who require a more tailored approach:

• Business owners and incorporated professionals looking for the right mix of salary and dividend income, retirement savings options, or how to optimize the proceeds of a business sale.
• High-income earners or those with multiple sources of income.
• Pre-retirees seeking an efficient drawdown strategy that preserves wealth and minimizes taxes.
• Cross-border individuals and dual citizens who must comply with tax rules in multiple jurisdictions.

KEY PILLARS OF TAX PLANNING

There are four core areas where smart tax planning can enhance your wealth strategy:

1. Income planning

• Defer income, thereby pushing taxes into the future when you may find yourself in a lower tax bracket. Consider making Registered Retirement Savings Plan (RRSP) contributions or waiting to realize a capital gain.
• Divide income with a spouse, common-law partner, or family members to reduce your household tax burden. Spousal RRSPs, pension income splitting, prescribed loans or Registered Education Savings Plans (RESP) are common methods.

2. Deductions and credits

Maximizing eligible deductions and credits can make a meaningful impact:

• Deductions reduce your taxable income. You can claim RRSP contributions, eligible business expenses or interest paid on investment loans.
• Credits reduce the tax you owe. These include credits for tuition fees, medical expenses, and charitable donations.

3. Investment planning

Tax-advantaged accounts can help to increase your cash flow, accelerate growth over time, and compound your wealth. Arrange your investments for tax efficiency by:

• Using registered accounts (like RRSPs and TFSAs) for interest-bearing investments.
• Holding Canadian dividend -paying stocks in non-registered accounts to benefit from the dividend tax credit.
• Proactively harvesting tax losses to reduce your tax exposure by freeing up funds for reinvestment in higher-growth opportunities.

4. Estate planning

Taxes upon death—especially capital gains—can reduce what you leave behind. You can offset some of this tax burden and smooth the transfer of wealth to the next generation by:

• Gifting assets during your lifetime to potentially avoid probate.
• Using life insurance to help cover tax liabilities and enhance your estate.
• Making charitable donations of cash or securities to generate tax credits and eliminate capital gains tax on the donated assets.

PROFESSIONAL ADVICE MATTERS

Canada’s tax system is detailed, complex, and different for everyone. That’s why personalized, professional guidance matters. A tax specialist can help you navigate ever-changing tax rules and identify strategies tailored to your goals, whether you’re focused on growing your wealth, funding your retirement, or planning your legacy.

Our Total Wealth Solutions approach helps you define and reach your financial goals at every stage of life.

Securities-related products and services are offered through Raymond James Ltd. (RJL), regulated by the Canadian Investment Regulatory Organization (CIRO) and a Member of the Canadian Investor Protection Fund. RJL financial/investment advisors are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund. Solus Trust Company (“STC”) is an affiliate of Raymond James Ltd. and offers trust services across Canada. STC is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund.